Business rates

Non-Domestic Rates, or Business Rates, are collected by local authorities and are the way that businesses and individuals who occupy ‘non-domestic’ properties contribute towards the cost of local services.

Business rates are charged on most non-domestic properties, like:

• Shops

• Offices

• Pubs and Restaurants

• Warehouses

• Factories

You’ll probably have to pay business rates if you use a building or part of a building for non-domestic purposes.

Under the business rates retention scheme we keep a proportion of the business rates paid locally. This means there is direct financial incentive for us to work with local businesses to create a positive local environment for growth, since we'll benefit from growth in business rates revenues. This money, together with revenue from Council Tax payers, grants provided by the Government and certain other sums, is used to pay for the services provided by us.

Further information about the business rates system, including what relief is available can be found on the Government website.

Business Rates bills are normally sent out in March of each year for the financial year that starts on the 1st of April. You can receive adjusted bills throughout the year if your circumstances change.

The bill will show how your charge has been calculated based on the rateable value of your property and the annual business rate multiplier set by Central Government.

It will set out how much your monthly instalments will be and when they are due to be paid. Ratepayers can pay their instalments over 12 months instead of 10. If you would like to pay your business rates over 12 months please e-mail businessrates@stalbans.gov.uk.

Please click here to read the Statutory Explanatory Notes issued by Central Government in relation to Business Rates.

• Business Rates Explanatory Notes 2023/24 ( pdf - 123.93 KB )

There are various types of Business Rate Relief available which may reduce the amount you are expected to pay.

Small Business Rate Relief:

From April 2017 eligible businesses with a rateable value of £12,000 or less are entitled to 100% relief on their liability. Businesses with a rateable value between £12,001 and £14,999 will receive tapered relief from 100% to 0%. Small Business Rate relief is calculated on a sliding scale of 2% for every £60 of rateable value over £12,000 and up to £14,999. The table below provides examples of how this taper works in practice.

The relief is generally only available to persons who are responsible for one business or one main business.

To obtain an application form for Small Business Rate Relief please email businessrates@stalbans.gov.uk quoting your full business address and account number or telephone us on 01727 819270.

Charitable Relief:

When a commercial property is occupied by a charity or trustees for a charity, and it is used wholly or mainly for charitable purposes, the charity or trustees are entitled to mandatory rate relief of 80% off the full rate bill.

Community Amateur Sports Clubs

Sports Clubs registered with the Inland Revenue as Community Amateur Sports Clubs (CASC'S) are also entitled to 80% reduction in their business rates.

Discretionary Relief for non profit making organisations

St Albans District Council can at its discretion award rate relief to non-profit making organisations whose main objectives are charitable, religious, or concerned with education, social welfare, science, literature or fine arts.

Hardship Relief

The Council has a discretionary power to reduce the payment of non-domestic rates by granting Hardship Relief. The principle purpose of an award of hardship relief is to provide short-term assistance to businesses that are suffering unexpected hardship, arising from circumstances beyond the control of the business and outside of the normal risks associated with running a business of that type. The Council must be satisfied that the viability of the business would be threatened if an award were not made.

Retail, Hospitality, Leisure Relief

From April 2023 business in the retail, hospitality and leisure sectors may qualify for 75% 'retail, hospitality and leisure relief' on their business rates. This is intended to help small businesses in sectors which may have been impacted by the Covid19 pandemic and/or a decline in 'in-person' shopping and similar. However, there are cash caps on the total amount of retail relief businesses can receive. This is likely to be applicable to chain stores or businesses which have a number of different business premises. For more information please click here. 

We have written to businesses about the cash cap and you may need to sign and return a declaration confirming your business complies with these rules. 

Transitional Relief

Business who would have seen increases in their Business Rate liability as a result of the 2023 revaluation may see that change deferred or phased in under Transitional Arrangements. For details of how this scheme works, please visit https://www.gov.uk/apply-for-business-rate-relief/transitional-relief

This list of reliefs is not intended to be exhaustive. For more detail please visit https://www.gov.uk/apply-for-business-rate-relief

If you think you should be eligible for relief and it is not showing on your most recent bill, please e-mail businessrates@stalbans.gov.uk giving details of what relief you believe you qualify for.

Business Rates are not payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties. After this period, rates are payable at the full occupied rate, although there are exceptions to this rule (see below).

Please be aware that the three or six month rate free period applies to the property. This means if you buy or rent an empty commercial property you will be immediately liable for empty rates payable at the full occupied rate if the property had already been vacant for more than 3 months for a non industrial property and 6 months if it is industrial.

There are certain types of property where a ratepayer will be exempt from the payment of business rates if the property is empty, regardless of how long it has been unoccupied. These properties are listed below:

• Empty properties with a rateable value less than £2900.
• Empty properties that are grade 1 or 2 listed buildings.
• Empty properties owned by charities and when it is next in use it will be occupied by a charity.
• Empty properties owned by a registered with the Inland Revenue as a Community Amateur Sports Club.
• Empty properties owned by Companies who are in Liquidation or in Administration.

An empty property where the occupier would be in breach of the health and safety act 1974 should they attempt to occupy it. In such circumstances the ratepayer would be prohibited by law from occupying the property and so no rates are payable.

Executors and Personal Representatives of deceased persons are normally exempt from paying business rates in respect of properties left empty by the person who has passed away.

The Council has discretion to reduce a ratepayer's bill if part of their property is unoccupied for a short period of time. The periods will be up to 3 months for non industrial premises (such as shops and offices) and up to 6 months for industrial premises (such as Warehouses and Workshops).

This list is not intended to be exhaustive. For more details please visit https://www.gov.uk/apply-for-business-rate-relief/exempted-buildings-and-empty-buildings-relief

If you think you are entitled to relief in respect of an empty property, please e-mail businessrates@stalbans.gov.uk giving details of the property and the reasons it is empty.